Takeda earmarks $15 billion for M&A – reports

Takeda has set aside up to $15 billion to spend on takeovers, according to press reports.

The Financial Timesreported that Japan’s largest pharma company has told investors it wants to buy US companies developing drugs for cancer, gastrointestinal conditions and diseases of the central nervous system such as Alzheimer’s.

Citing sources close to the company, the FT said the company set aside $10bn-$15bn, which could finance one large deal or several smaller ones.

One source said Takeda could spend up to $20 billion for the right assets.

Takeda’s European chief, Marc Princen, told pharmaphorum earlier this year that the company is open to M&A to bolster its portfolio of drugs.

The company has been restructuring after a difficult period after its Actos (pioglitazone) diabetes drug went off patent a few years ago.

New CEO Christophe Weber is leading the changes, and has outlined a strategy to make the company less reliant on Japan’s stagnant market, and is looking to expand into the US, Europe and emerging markets.

The news follows Pfizer’s acquisition of Medivation for $14 billion, following a bidding war including companies such as Sanofi.

Medivation was a prime target for big pharma as it has already marketed blockbuster prostate cancer drug, Xtandi (enzalutamide).

GW Pharma, which is developing a medicine for childhood epilepsy, has emerged as a potential takeover target for big pharma.

According to press reports, GW has hired investment bank Morgan Stanley to handle approaches from pharma.